Lubricants Market Size
Global Lubricant Market reached USD 161.1 billion in 2022 and is expected to reach USD 196.9 billion by 2031, growing with a CAGR of 2.6% during the forecast period 2024-2031. For the growth in the power, automobiles and engineering industries, the lubricant company presents new market potential.
As consumers switch to more efficient cars and motorcycles, they utilise higher-grade lubricants, which increases the market share of multi-grade lubricants.
The automobile industries in particular in China and India have seen substantial growth. Both countries have significant populations as well as growing middle classes with more disposable cash, which increases the need for cars. Government initiatives supporting growth in infrastructure and industrialization have also increased demand for lubricants in these nations. Asia Pacific lubricants market expected to grow with a CAGR of 3.4% in the forecast period
There are prospects of high level of investment in the energy sector, transport and manufacturing has the potential to drive very strong growth in the aviation lubricant as well as in the transformer oil. Because of the expansion of the global economy and the consequent rise in consumer purchasing power, the future prospects for automotive lubricants holds a major share of 56% in 2022 and growing significantly.
Market Scope
| Metrics | Details |
| CAGR | 2.6% |
| Size Available for Years | 2022-2031 |
| Forecast Period | 2024-2031 |
| Data Availability | Value (USD ) |
| Segments Covered | Product Type, End User Industry, Grade, and Region |
| Regions Covered | North America, Europe, Asia-Pacific, South America and Middle East & Africa |
| Fastest Growing Region | Asia-Pacific |
| Largest Region | Asia-Pacific |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and Acquisitions, New Equipment Type Launches, Growth Strategies, Revenue Analysis, Porter’s Analysis, Pricing Analysis, Regulatory Analysis, Supply-Chain Analysis and Other key Insights. |
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Market Dynamics
Demand for High-Performance Lubricants Drives the Market
High-performance lubricants are especially designed to reduce wear and friction between moving parts, improving overall effectiveness. Their remarkable capabilities set them apart from traditional lubricants, making them the top choice across a range of applications. As wear and tear decrease, machines run smoother and last longer. These lubricants are the go-to solution for industries aiming to optimize performance and longevity.
A vast distribution network and a brand image that can last in the minds of consumers are currently necessary for success in the lubricant business. The market is modifying the definition of lubricant in terms of marketing strategy. As companies work to increase output and reduce downtime, high-performance lubricants like synthetic and speciality lubricants are in increased demand.
High-performance lubricants are specifically formulated to minimize friction and wear between moving parts, leading to improved overall efficiency. The development of infrastructure, drives the demand for lubricants
The rapid industrialization in the automotive industry has led to a strong growth in the production of vehicles and provides for better purchasing power with the middle class of affording better lifestyle with better investment. High-performance lubricants offer superior performance characteristics compared to conventional lubricants, making them desirable for various applications. As number of vehicles are increasing around the globe boosts the demand for lubricants market in the forecast period.
The market is changing the definition of lubricant in terms of marketing strategy, which at the moment necessitates a broad distribution network and a brand image that can live in the thoughts of the consumer and turns out to be a crucial element for success in the lubricant sector. High-performance lubricants, such as synthetic lubricants and specialty lubricants, are in higher demand as businesses try to boost output and cut down on downtime.
The industry is reshaping the lubricant definition in terms of marketing strategy, which at present calls for a wide distribution network and a brand image which can reside within the minds of the customer, and turns out to be an important factor for success in the lubricant industry.
Consumers Are Shifting Away from Small Cars and Shifting Towards Hatchbacks
There is an increasing need for hatchbacks on the market since individuals select them more often. As a consequence, there are a greater number vehicles on roadways and sales rise. As there are more hatchbacks on roadways, lubricants are required for greater amounts of servicing and maintenance.Hatchbacks are more common in densely populated urban areas due to their lower size and ease of parking, where parking is limited and congestion in traffic is common. As a consequence, there are a greater number vehicles on roadways and sales rise. As there are more hatchbacks on roadways, lubricants are required for greater amounts of servicing and maintenance.
And also the expansion of infrastructure in rural areas, coupled with enhanced internet connectivity and greater penetration of smartphones, has fueled the growth of ecommerce sales in Global hinterland. As a result, there has been an uptick in demand for LCVs to facilitate last-mile delivery of goods ordered online. This surge in demand for LCVs has created a new market for lubricants in the space.
Demand For Electric Vehicles will Hamper the Market Demand
Internal combustion engines, that consume a significant quantity of lubricants in conventional vehicles, are not required in EVs. As a result, it is expected that as EV adoption increases, it directly affects the sales of lubricants market. As consumers are more interested and inclined to sustainability boosts the electric vehilcels have a huge impact on the lubricants market.
Different lubrication demands applied to electric vehicles compared conventional ICE motor vehicles. EVs still need lubricants for parts like bearings and gears, but they don't need coolant, engine oils or gearbox fluids like ICE vehicles do. For electric vehicles, the overall lubricant demand can be lower.
As the technology and mechanisms of conventional vehicles and modern EVs vary immensely, the need and demand for their support materials have also changed.
Market Segmentation Analysis
The global lubricant market is segmented based on product type, end usere industry, grade, and region.
Growing Industries with Modern Concepts are Convinced the Synthetic Lubricants
Excellent lubricating properties of synthetic lubricants minimise wear and friction between moving parts. As a result, breakdown time reduces, reliability improves, and equipment life is extended. Synthetic lubricants segment is likely to expand at a steady rate of 2.6% during the forecast period.
Compared to mineral-based lubricants, synthetic lubricants are designed to have better performance qualities. Better heat stability, oxidation resistance, and viscosity control allow them to keep their characteristics even under challenging operating conditions. Synthetic oils and fluids are becoming the preferred choice of automotive and industrial end users, especially the leaders in industry best practices, such as automotive and metalworking companies.
Market Geographical Share
Automotive Sector Pushed up the Asia Pacific Lubricant Market
Lubricant market in the Asia-Pacific region is experiencing substantial expansion. In order to capitalize on this rising market, multiple international automobile manufacturers have established manufacturing facilities within the Asia Pacific regionTo take advantage of the expanding market, numerous foreign automakers . Consequently, there has been a notable increase in automobile production and sales for both local and global markets. This has led to higher consumption of lubricants in the manufacturing and assembly phases.
Moreover, lubricant companies are actively introducing fresh product offerings to align with emerging regulations. For instance, Goodyear Lubricants unveiled a novel series of automotive lubricant oils in 2022, tailored for distribution across South Asia, Southeast Asia, and New Zealand. This innovative range of lubricants has been meticulously crafted to diminish carbon emissions and align seamlessly with the prevailing BS-6 and EURO 6 standards. Further more rising trend towards individual mobility choices, like cars and motorcycles, is driven by urbanization and the limited effectiveness of transportation alternatives in certain areas.constructed production plants in the Asia Pacific region. As a result, there has been an upsurge in the production and marketing of automobiles for both domestic and international markets, which has increased lubricant usage during the production and assembly processesThe shift to Asia is not a surprising phenomenon as businesses and manufacturers become increasingly globalised in order to seek out better value-cost and, at the same time, compete to fulfill rapidly emerging gaps in the Asian market.
There is an increasing preference for personal mobility options, such as cars and motorcycles, as urbanisation rises and transit options may not be sufficient or effective in some places. This is what is doing to the need for lubricants. The lubricant market has grown in the Asia Pacific area as an outcome of the developing automotive sector's quick industrialization, increasing vehicle ownership, and focus on fuel efficiency.
Market Global Players
The major global players include Grauer & Weil (India) Limited, Mosil Lubricants, Anand Engineers Pvt. Ltd., APAR Lubricants, Exxon Mobil Corporation., Arabian Petroleum Ltd., JAX Incorporated, Manak Petro Chem (India)., Castrol, Total Engines, Phillips 66, and NANDAN PETROCHEM LTD.
COVID-19 Impact Analysis
The pandemic helps to think consumers to travel by public transport, so many consumers after the pandemic ends buy individual bikes, cars helps the lubricants market in the pandemic. Food is the primary and there are no restrictions on food processing industries helps the lubricants market in the pandemic.
Due to production delays, difficulties with the supply chain, and a decrease in consumer demand for new vehicles, the automobile industry, a significant consumer of lubricants, experienced a slowdown during the pandemic. As a result, there was a decline in demand for lubricants used in both passenger and commercial vehicles.
Russia- Ukraine War Impact
The Russia & Ukraine war impacted the production of lubricants as most of the lubricants are manufactured in the Europe region. Due to the Russia-Ukraine war the energy prices in the Europe region keep increasing and the cost of production of lubricants increases and manufacturers loses the profit margins.
Key Developments
- On Jan 4, 2023, Goodyear Lubricants to launch new BS-6 compliant lubricants for India, Manufactured in haryana. Good Year lubricants has announced a new range of vehicle lubricant oils for distribution in South Asia, Southeast Asia and New Zealand.
- On Mar 5, 2023, An increase in trade and commerce links between Qatar and India can be seen as a result of Hindustan Petroleum Corporation Limited (HPCL), an Indian oil and gas refining firm, launching its lubricant line of products qatar.India’s HPCL launches its lubricants range of products in Qatar. Hindustan Petroleum Corporation Limited (HPCL), an Indian oil and gas refining company, has launched its lubricant range of products in Qatar, indicating a boost in trade and commerce ties between Qat
- On Feb 27, 2023, Neste introducing new and more sustainable lubricants produced with also renewable or re-refined base oils. During the first quarter of 2023, Neste will launch a new line of Neste ReNewTM lubricants in Finland, Sweden, the Baltic states, and Poland. The new lubricants are created using base oils that are renewable or re-refined along with premium additives.
Why Purchase the Report?
- To visualize the global lubricants market segmentation based on product type, end user industry, grade, and region, as well as understand key commercial assets and players.
- Identify commercial opportunities by analyzing trends and co-development.
- Excel data sheet with numerous data points of lubricants market-level with all segments.
- PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
- Product mapping available as Excel consisting of key products of all the major players.
The global lubricants market report would provide approximately 60 tables, 65 figures and 181 Pages.
Target Audience 2024
- Manufacturers/ Buyers
- Industry Investors/Investment Bankers
- Research Professionals
- Emerging Companies
